Trade terms drop for 16th month in a row in March

Korea’s terms of trade fell for the 16th straight month in March as the nation’s export-reliant economy struggled with slowing demand and trade disputes, data showed Wednesday.

The terms of trade index for products reached 92.27 last month, down 5.1 percent from a year earlier, according to the preliminary data from the Bank of Korea (BOK).

The trade terms index measures the amount of imports a country can purchase for each unit of exports.

The figure has been on a constant decline since December 2017, when the index lost 3.5 percent on year.

Moreover, the index has remained below the benchmark 100 line for the 16-month period. A reading below 100 means import prices are higher than those of exports, resulting in unfavorable terms of trade.

The index of exports volume slid 3 percent on year to 151.16 in March, and the one for imports volume stood at 128.32, down 6.1 percent from a year earlier.